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Overview

Bank of China provides a $87 million loan to Loews Hotels to finance its acquisition of the Mandarin Oriental San Francisco

Commitments (Constant USD, 2023)$91,019,259
Commitment Year•2015Country of Activity•United StatesDirect Recipient Country of Incorporation•United StatesSector•Business And Other ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 1, 2015
Start (actual)
Apr 1, 2015
End (actual)
Apr 1, 2015
Last repayment (originally scheduled)
Oct 1, 2018

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Receiving agencies

Private Sector

  • Loews Hotels, LLC

Collateral providers

Private Sector

  • Loews Hotels, LLC

Loan description

Bank of China provides a $87 million loan to Loews Hotels to finance its acquisition of the Mandarin Oriental San Francisco

Interest type•Variable Interest RateMaturity•3 years

Collateral

This loan was secured by the 155-room Mandarin Oriental San Francisco hotel, a luxury hotel located on the top 11 floors of the 48-story 345 California Center office tower at 222 Sansome St. in San Francisco later renamed the Loews Regency San Francisco.

Narrative

Full Description

Project narrative

In September 2015, Bank of China U.S.A. (BOC U.S.A.) issued a $87 million USD mortgage loan to Loews Hotels, LLC — a Delaware-incorporated American luxury hospitality company based in New York City and a wholly-owned subsidiary of American conglomerate Loews Corporation — to finance its acquisition of the Mandarin Oriental San Francisco. This loan carried a maturity period of three years with two optional one-year extensions, a final maturity date of October 1, 2018, and an interest rate of LIBOR plus an applicable margin. This loan was secured by (i.e. collateralized against) the 155-room Mandarin Oriental San Francisco hotel. Jones Lang LaSalle Incorporated (JLL) arranged the financing on behalf of the borrower. The proceeds were to be used by the borrower to cover about 55% of the approximately $158 million USD purchase price for the 155-room Mandarin Oriental San Francisco, a luxury hotel located on the top 11 floors of the 48-story 345 California Center office tower at 222 Sansome St. in the Financial District in San Francisco within walking distance of Union Square and Fisherman’s Wharf. The hotel featured Brasserie S&P, more than 5,000 square feet of meeting space and a new 8,000-square-foot spa and fitness center. The hotel was renamed Loews Regency San Francisco when the acquisition was completed in April 2015. In May 2019, Loews sold the hotel to Westbrook Partners, which then entered into an agreement with Four Seasons Hotel to operate it.